GBTI Does Well in 2011
Local commercial bank GBTI that has been expanding over the years has been doing so well that shareholders will see the benefits in their dividends. The Bank held its AGM yesterday at the recently opened HQ building in Kingston Georgetown. The Chairman of the Bank Robin Stoby told shareholders that the Bank’s impressive performance cannot be fully celebrated without a corresponding benefit to the investor/shareholder. The bank paid out a total dividend of nine dollars per share, that’s one dollar and a half more than what it paid last year.
And the Bank’s Chief Executive Officer John Tracy in his report noted that GBTI is maintaining its market share and achieving profits at the same time. He remarked that based on the bank’s performance, the director’s recommended the dividend payment which is 30 percent of the net after tax profits for last year.
The CEO also noted that the financial sector in the country remained highly liquid with all banks exceeding the minimum statutory requirements. Banks are holding 105 billion dollars in liquid assets which is 35 percent of their total assets The Banking sector in the country according to the GBTI CEO is also in excess of what they are required to have as Minimum Reserve Requirements, that is the money that banks are required by law to deposit into the Central Bank as a Reserve.
Individuals and Businesses continued to deposit funds into the commercial banks while Services and Households did the bulk of borrowing from the commercial banks.
GBTI’s CEO in his report to the shareholders stated that because of the highly liquid state of the Banking Sector, coupled with relatively low demand for loans, the Sector is very competitive. The bank, that’s GBTI, increased its loan portfolio according to Tracey by 48 percent. GBTI claims, in terms of loans, that it made coordinated targeted approaches to key Industries as well as individuals. The CEO added that economic growth in the country also influenced the growth of the Banks’ portfolio as it aligned itself with the key drivers of the economy.
As is the case with the National Banking Sector GBTI’s loan portfolio was more concentrated in the Services and Household sectors followed by Manufacturing, Mining and quarrying then Agriculture.
Looking forward, GBTI expects to see a decline in interest rates that would see a decrease in the interest rate spreads.